Business appraisals are a mix of art and science. The bottom line is of course that a business is worth what a buyer will pay at a certain point in time. However, there are many ways to estimate a fair price, and buyers will typically ask for the logic behind your asking price. Responding well to these questions will improve your chances of selling your business for the price you want.
Finn Business Brokers understand what elements are included in a proper appraisal and how to present them: past business sales, what an accountant would consider a reasonable price, and what a bank would be willing to lend.
We employ a number of financial models to establish a recommended listing price, including:
•Rule of Thumb Method
•Capitalised Earning Approach
•Cash Flow Method
•Tangible Assets Method
•Costs to Create Approach
•Value of Specific Intangible Assets